Mehra
Zipcar Chetna Case Assignment
Zipcar is a convenient, cost-effective company that provides cars for people who need
short-term on demand private car access. The problem that our service solves is that people
who dont have a car, but need one to go out of town or to run some errands have the
accessibility to get a car by the hour at a nearby location. This service is targeted to young
students, such as college students who dont have a car but sometimes need one for an hour or
two for an interview, a doctors appointment, a party, etc. Customers will benefit from this
service because they wont have to bother people for rides to places since they will have the
freedom to a private car by the hour. For instance, say you had to go to the airport to pick up
your dad, but being a college student you didnt have a car, however, with a company like
Zipcar you were able to reserve a car for online an hour just so you could pick your dad. By
using Zipcar you were able fulfill your obligation and you were able to conveniently get
transportation there and back.
Chases strongest argument is that after the company launched in May each month there
members increased, not only did new members join every month, previous members stayed;
therefore, there was a high retention rate. With the retention rate being high this implies that
customers enjoyed Zipcars service, and would want to use it again. Moreover, Chase believes
that there are approximately 15,000 people in Boston who fit the Zipcar user profile, so even
if they reach 10,000 of those customers they are targeting a huge market just in one city. In
fact, if they reach 10,000 people in Boston, whos to say that, they cant reach 10,000 people
in multiple cities such as Los Angles, New York City, Washington D.C. etc.